Answer — What to do when someone else is using a deceased parent’s bank or credit-card accounts
This guide explains practical steps under Vermont law to stop unauthorized use of a deceased person’s financial accounts and to regain lawful control. It assumes no prior legal knowledge. This is educational only and not legal advice; consult a Vermont probate or consumer attorney for case-specific legal help.
Overview: immediate priorities
- Get certified copies of the death certificate from the Vermont Department of Health. Banks and card companies require a death certificate to act. See Vermont Vital Records: https://www.healthvermont.gov/health-statistics/vital-records.
- Contact the bank(s) and card issuer(s) right away. Tell them the account owner died and that you suspect someone is using the accounts. Ask them to freeze the accounts and stop further charges while you sort out authority to act.
- Document everything. Write down dates, times, names of bank representatives, and keep copies of all written communications and account statements showing unauthorized activity.
Who can legally control the accounts?
Control depends on how the accounts were titled and whether a will or estate proceeding exists.
- Joint accounts with right of survivorship usually pass immediately to the surviving joint owner. The bank may require its procedures to retitle or transfer the account.
- Payable-on-death (POD) or transfer-on-death (TOD) designations bypass probate and pay the named beneficiary directly.
- Accounts solely in the decedent’s name generally become part of the decedent’s estate and must be handled through probate unless small-estate shortcuts apply.
- Someone using a deceased person’s card or account without authorization is generally not a lawful account holder and may be committing fraud or theft.
Probate process and getting authority to act in Vermont
If accounts are solely in the decedent’s name (or if a named account-holder’s authority is disputed), a person normally must be appointed by the probate court as the personal representative (executor or administrator) before the bank will release funds. Vermont’s probate system governs appointment and the duties and powers of a personal representative. See Vermont Judiciary, Probate Division: https://www.vermontjudiciary.org/courts/probate.
For statutory authority and rules relating to probate, fiduciaries, and estates, see Title 14 (Probate, Fiduciaries and Trusts) of the Vermont Statutes: https://legislature.vermont.gov/statutes/title/14. For criminal statutes (theft, fraud, or unauthorized use), see Title 13: https://legislature.vermont.gov/statutes/title/13.
Step-by-step: how to regain control
1. Collect documents
Find the death certificate, the decedent’s will (if any), bank and card statements, account agreements, and any paperwork showing joint ownership or POD beneficiaries.
2. Contact financial institutions
Call each bank and credit-card company. Ask them to freeze the account pending proof of authority. Provide the death certificate and the will or other proof if you have it. If someone else has used the account since death, ask for a dispute form and copies of transaction records.
3. File a police report for suspected theft or identity fraud
If a person is using the decedent’s accounts without authority, file a police report with your local law enforcement agency. A police report supports bank investigations and may be necessary for criminal or civil remedies. For general consumer resources in Vermont, see the Attorney General’s office: https://ago.vermont.gov/.
4. Determine whether probate is required
If accounts are solely in the decedent’s name, you will likely need to open a probate estate or qualify for a small-estate process. The probate court issues letters testamentary or letters of administration that prove your authority to act. The Vermont Judiciary’s Probate Division explains filing and forms: https://www.vermontjudiciary.org/courts/probate. See Title 14 of the Vermont Statutes for statutory procedures: https://legislature.vermont.gov/statutes/title/14.
5. Seek emergency or expedited relief if needed
If a suspected wrongdoer is draining funds, ask the probate court for emergency relief or a temporary restraining order. Courts can act quickly to preserve estate assets when there is evidence of imminent dissipation.
6. Use available small-estate procedures if eligible
Vermont law provides simplified processes for smaller estates that may allow faster access to funds without a full probate administration. Check the probate court rules and Title 14 for thresholds and procedures: https://legislature.vermont.gov/statutes/title/14.
7. Close or retitle accounts after you have authority
Once you hold letters from the probate court or the bank accepts the POD/joint-title documentation, you can close accounts, transfer funds to the estate account, pay valid debts, and distribute assets according to the will or Vermont intestacy rules.
Dealing with credit-card charges and creditors
- Dispute unauthorized charges in writing and ask for transaction records.
- Notify major credit bureaus if identity theft is suspected. Consider a fraud alert or credit freeze.
- Keep records of debts and payments. Only valid debts are paid from the estate; personal debts of an heir do not become estate debts.
When to get a lawyer
Consider hiring a Vermont probate or consumer attorney if:
- A person is actively withdrawing funds or racking up charges.
- You need emergency court relief to stop dissipation.
- The estate is complex or contested among family members.
- Criminal charges or identity-theft investigations may be necessary.
Typical documents banks and courts ask for
- Certified death certificate(s).
- Original will (if any) and any codicils.
- Identification for the person seeking to act (photo ID).
- Letters testamentary or letters of administration from the probate court.
- Account statements showing unauthorized transactions.
Useful Vermont and federal resources
- Vermont Judiciary — Probate Division: https://www.vermontjudiciary.org/courts/probate
- Vermont Statutes, Title 14 (Probate, Fiduciaries and Trusts): https://legislature.vermont.gov/statutes/title/14
- Vermont Statutes, Title 13 (Crimes): https://legislature.vermont.gov/statutes/title/13
- Vermont Department of Health — Vital Records (death certificates): https://www.healthvermont.gov/health-statistics/vital-records
- Vermont Attorney General — consumer information: https://ago.vermont.gov/
- Federal identity-theft resource (FTC): https://www.identitytheft.gov
Helpful Hints
- Freeze accounts quickly. A short delay can allow more unauthorized withdrawals.
- Ask the bank for a written statement of account activity and any holds or freezes they place.
- Keep multiple certified death certificates. Banks and government agencies often each require their own copy.
- Preserve the original will if you find one. Probate courts generally need the original.
- If you are named joint account holder, confirm whether the bank treats the account as survivorship or as an account where the surviving signer must still provide proof.
- Make a clear paper trail. Emails and certified mail help prove timely notification and actions taken.
- When in doubt, consult a probate attorney early if funds are being misused. Courts can move faster to stop harm than recovering money later.
Disclaimer: This article is informational only and not legal advice. It does not create an attorney-client relationship. For legal advice about a specific situation in Vermont, consult a licensed attorney familiar with Vermont probate and consumer law.